Tracy Latona’s Post

Financial Literacy

Let’s look at some common mistakes that may be preventing you from saving more money: 𝟭. 𝗧𝘂𝗿𝗻𝗶𝗻𝗴 𝗱𝗼𝘄𝗻 𝗵𝗲𝗹𝗽 If you’re able to pay all your bills on your own, and your family (or friend) offers you help that would allow you to save more, take it. It makes no sense to move out to an apartment you pay for if family members are happy to let you live with them while you save for a down payment or are struggling to pay for everything. 𝗣𝗿𝗼 𝘁𝗶𝗽: As long as you can negotiate healthy emotional boundaries, accepting help can help you spend less and boost your bank account when you need it. 𝟮. 𝗜𝗴𝗻𝗼𝗿𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗲𝘀 It can be tempting to just wing it and check your account balance occasionally at the ATM or online. But if you don’t know what’s coming in and out of your account regularly, you could be leaking money. Auto payments for things you thought you’d canceled, fees you didn’t know were being assessed, and false or repeated charges can all suck money from you. And if you don’t know how much money is in your account, you can overdraw and pay huge overdraft fees. 𝟯. 𝗟𝗶𝘃𝗶𝗻𝗴 𝗯𝗲𝘆𝗼𝗻𝗱 𝘆𝗼𝘂𝗿 𝗺𝗲𝗮𝗻𝘀 This is the “buy low, sell high” of personal finance, but it’s so true and so crucial to surviving financially anywhere on Earth. Every month, you have to bring in more money than you spend. There are two ways to make sure this happens: Spend less over the month or bring in more money. If you don’t, you’ll be dipping into savings (or borrowing on a credit card) to pay your bills. Worse, you could burn through your savings and go into debt. 𝟰. 𝗡𝗼𝘁 𝗯𝘂𝗱𝗴𝗲𝘁𝗶𝗻𝗴 This is another classic piece of advice that is perpetually true. Figure out how much money you’re bringing in and how much can go out for different categories of expenses, and then stick to that budget. If you don’t write down what you can spend on each category of expense, it’s way too easy to spend more than you’re bringing in without realizing it until it’s too late. 𝗕𝗼𝘁𝘁𝗼𝗺 𝗹𝗶𝗻𝗲 Staying informed about your finances and about the world is the best way to maintain financial health and grow your savings. It’s also worth the time to research the best savings accounts to make sure you’re earning the most interest with low or no fees. You should also be doing a review of your own financial situation every three months to make sure you’re on track. If you can avoid making the money mistakes we’ve talked about, you should be able to stay on the path to saving what you want for retirement. How do you compare? Subscribe to Worthy, our free newsletter and find out how your finances stack up against other Americans. https://lnkd.in/eXtwgRM3

Imagine this: You're driving home after a long day of holiday shopping, trunk full of gifts, when suddenly—BOOM! Your heart is in your throat as the steering wheel pulls to the left, and your dashboard lights up to tell you that your tire pressure is low. You pull off to the side of the road, thankful that there wasn't an accident. And as you look at your tire, you see immediately that there's no way that it can be repaired. You need a new one. Right after you filled your trunk with hundreds of dollars of Christmas gifts. But instead of panicking about how much it will cost to fix it, or which credit card to choose, you're relieved that you're safe and feel at peace. That's because you have an emergency fund you have access to. And the gifts you just bought? Paid for in cash. You reflect on what life was like a year ago, and how this situation would have caused you major panic, stress, and anxiety. But instead of worrying about maxing out another credit card for this emergency, it's just a pain in the butt inconvenience. You're confident as you transfer what you need from savings to checking to pay for your new tire, and know that your emergency fund will be refilled soon. What changed from last year to this year, is that you chose to start being intentional with your finances and learn to manage and steward God's money well. You learned how to structure and organize your money through a budget, and also changed the way you think and feel about money, so it's no longer stressful. You know you have a clear plan on how to pay off your debt for good and grow your bank account, because ultimately, you want to live a life of generosity. And I know that if you're still reading this, you want this to be YOUR reality (without the blown tire, of course!) This transformation is exactly what I guide my clients through with The Steward and Grow Method, so they can manage their money with confidence, and grow their mindset, and bank account. I know you're ready to be in a position to buy Christmas gifts with cash, so you're not surprised by a January credit card bill. You're ready to grow your bank account, so you can handle emergencies with ease. And, you're ready to change how you think and feel about money, so you can feel stable internally and externally and never have financial stress again. Ready to change your financial reality? DM me 'READY' and let's set up a Money Strategy Session to see where you are, where you want to be, and how to get you there. And if you'd like help in taking action on that plan, we will talk about what working together looks like, so you can accelerate your progress and reach your financial goals faster! You don't have to let emergencies be a financial stressor. You can Steward and Grow your finances to handle them with ease!

One of the biggest 𝗿𝗲𝗴𝗿𝗲𝘁𝘀 that people have with their personal finances is:  "𝗜 𝗵𝗮𝘃𝗲 𝗻𝗼𝘁𝗵𝗶𝗻𝗴 𝘁𝗼 𝘀𝗵𝗼𝘄 𝗳𝗼𝗿 𝗺𝘆 𝟭𝟬-𝟮𝟬 𝘆𝗲𝗮𝗿𝘀 𝗼𝗳 𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝗱𝗲𝘀𝗽𝗶𝘁𝗲 𝗲𝗮𝗿𝗻𝗶𝗻𝗴 𝗮 𝗴𝗼𝗼𝗱 𝗶𝗻𝗰𝗼𝗺𝗲 & 𝗲𝘃𝗲𝗻 𝗴𝗲𝘁𝘁𝗶𝗻𝗴 𝗽𝗮𝘆 𝗶𝗻𝗰𝗿𝗲𝗺𝗲𝗻𝘁𝘀 𝘀𝗲𝘃𝗲𝗿𝗮𝗹𝗹𝘆."  𝘞𝘩𝘺 𝘥𝘰𝘦𝘴 𝘵𝘩𝘪𝘴 𝘩𝘢𝘱𝘱𝘦𝘯 𝘢𝘯𝘥 𝘸𝘩𝘺 𝘥𝘰 𝘴𝘰 𝘮𝘢𝘯𝘺 𝘱𝘦𝘰𝘱𝘭𝘦 𝘦𝘯𝘥 𝘶𝘱 𝘪𝘯 𝘵𝘩𝘪𝘴?👇 Let's start with why this regret happens:  1. Taking huge 𝗱𝗲𝗯𝘁𝘀 that 𝗼𝘃𝗲𝗿𝘀𝘁𝗿𝗲𝘁𝗰𝗵 your budget and take decades to settle. 2. Living paycheck to paycheck. Having a 𝘇𝗲𝗿𝗼 𝘀𝗮𝘃𝗶𝗻𝗴𝘀 𝗿𝗮𝘁𝗲  3. 𝗟𝗶𝗳𝗲𝘀𝘁𝘆𝗹𝗲 𝗰𝗿𝗲𝗲𝗽.  This is where an increase in income leads to a corresponding increase in lifestyle expenses 4. 𝗕𝗹𝗮𝗰𝗸 𝘁𝗮𝘅. Shouldering the burden of your family, relatives and friends  5. Lack of a long term financial plan.  7. Not budgeting your money. You don't intentionally tell your money where to go. 7. 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗹𝗹𝗶𝘁𝗲𝗿𝗮𝗰𝘆. Lacking knowledge on how to manage your personal finances 𝗛𝗼𝘄 𝘁𝗼 𝘁𝗮𝗰𝗸𝗹𝗲 𝘁𝗵𝗶𝘀?  1. 𝗕𝗲 𝘃𝗲𝗿𝘆 𝗰𝗮𝗿𝗲𝗳𝘂𝗹 𝘄𝗶𝘁𝗵 𝗹𝗼𝗻𝗴 𝘁𝗲𝗿𝗺 𝗱𝗲𝗯𝘁𝘀.   For example, A 30 year mortgage(depending with the interest on the mortgage and your income) can overburden your budget and leave you with very little to save after normal expenses.  A 30 yr high interest loan can take you a lifetime to clear. Not many people can recover from a 30yr long bad decision. Avoid any long term high interest debts. 2. 𝗦𝘁𝗮𝗿𝘁 𝗯𝘂𝗱𝗴𝗲𝘁𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗺𝗼𝗻𝗲𝘆 𝗮𝗻𝗱 𝘁𝗿𝗮𝗰𝗸𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀. If you don't tell your money where to go, you will always wonder where it went. Yes we demand audits from elected officials on the use of public funds, but do you ever audit how you spend your money? Budgeting and tracking your expenses is all about being intentional with how and where you spend your hard earned money. 3. 𝗧𝘄𝗼 𝘁𝗵𝗶𝗻𝗴𝘀 𝘁𝗵𝗮𝘁 𝘄𝗶𝗹𝗹 𝗱𝗲𝘁𝗲𝗿𝗺𝗶𝗻𝗲 𝗵𝗼𝘄 𝘄𝗲𝗹𝗹 𝘆𝗼𝘂 𝗱𝗼 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹𝗹𝘆.   a) How much you earn b) How much you save  In most cases the later counts more. In the short term, work on how you can cut your expenses. In the long term, work on how you can increase your income It's not how much you earn that counts, it how much you keep.  A high savings rate will help you have more money to invest in cash generating assets. 4. 𝗟𝗲𝘃𝗲𝗹 𝘂𝗽 𝘆𝗼𝘂𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗹𝗶𝘁𝗲𝗿𝗮𝗰𝘆.  There is a theory that says that if all the money in the world was divided equally among all people, the money would go back to the same hands.  Financial illiteracy is the main reason why almost all lottery winners go broke, and why some professional athletes go broke after retirement. It's the same reason why we end up achieving so little with our finances despite earning good incomes.

Three of every four Americans got a refund check last year according to IRS statistics. With a little planning, you can maximize the benefit of your refund. Here are some ideas: Pay off debt. If you have debt, a great spending priority can be to reduce or eliminate it. This is especially true if you have any credit card debt. With rate increases, credit card interest can cripple you financially. Start by paying down debts with the highest interest rates and work your way down the list until you bring your debt burden down to a manageable level. Save for retirement. Saving for retirement works like debt, but in reverse. The longer you set aside money for retirement, the more time you give the power of compound earnings to work for you. This money can even continue working for you long after you retire. Consider depositing some or all of your refund check into a Traditional or Roth IRA. You can contribute a total of $7,000 to an IRA in 2024, or $8,000 if you're 50 years old or older. Save for a home. Home ownership is a source of wealth and stability for many Americans. If you don't own a home yet, consider building up a down payment fund using some of your refund. If you already own a home, consider using your refund to start paying your mortgage off early. This is especially important if you have a recent mortgage with higher interest rates. Invest in yourself. Sometimes the best investment isn't financial, but personal. If there's a course of study or conference that would improve your skills or knowledge, that could be a wise use of your money in the long run. Give some of it away. Helping people, and being able to deduct gifts and charity from your next tax return, isn't the only benefit of giving to a good cause.

Smiles beamed at me through the Zoom screen this morning. 😁 😀 In our second financial coaching session, new clients celebrated transformation in their money, spending habits, and mindset shifts. When we first spoke at the beginning of the month, this newly wed couple were stressed, anxious, and the wife was in tears because their finances felt like they were in shambles. They were being crushed under the weight of debt, no financial plan, and not working together with their money. 😨 Today, she was giddy with joy as the husband looked on with pride and relief on his face. Here are some of the wins they shared: -They will be out of credit card debt by the end of the summer, when before working together on their finances it felt like they would never pay off the credit cards. -The wife went from thinking she had a shopping addiction to not even wanting to impulse shop, and the desire is gone! She sees a change in her behavior, and owes it to teamwork with her husband and accountability. "I can't just spend because it's OUR money, and there's accountability." -The husband said the light at the end of the tunnel to become debt free is getting brighter; the wife said, "I was in a cave; I never thought I'd see the light. Now I do!" -The husband shared he had a dream where he took his car into Pep Boys and needed a $116 repair. In his dream, he called his wife, and asked if it was okay to spend that amount. Her response in his dream? 'YES! It's okay! It's your car!" They're even working together in his dreams! 🚘 They closed all their credit cards and paid off $1,375.58 of debt in February, with a plan to put a work bonus to pay off more debt to the tune of over $4,000 in March! 🔥 They went from living paycheck to paycheck to victory over their money by: -Committing to work together and combining the power of their incomes to ignite progress, instead of trying to do it separately on their own. -Talking daily what they want for their future (Hello, Homeownership!). -Living on an intentional budget that gives them permission to spend and keep what's important to them, like Crossfit memberships and their car, while CRUSHING their goal of paying off debt. -Having an organized, structured plan to get them to their goals of being debt free and having a 6 month emergency fund. I am so PROUD of them and am blown away by their amazing progress in one month! 👏 Are you ready to stop financial stress and get results like this? Drop an emoji 🙋♀️ in the comments if you're ready for support and accountability to break the hamster wheel of money stress. We'll set up a Money Strategy Session to see if working together is a good fit to accelerate you to destroying debt, growing your bank account, and transforming your mindsets, habits, and behaviors with money so that you can live a life on your terms (Not a banks!).

Tax Tip: Ideas for a Great Refund Three of every four Americans got a refund check last year according to IRS statistics. With a little planning, you can maximize the benefit of your refund. Here are some ideas: Pay off debt. If you have debt, a great spending priority can be to reduce or eliminate it. This is especially true if you have any credit card debt. With rate increases, credit card interest can cripple you financially. Start by paying down debts with the highest interest rates and work your way down the list until you bring your debt burden down to a manageable level. Save for retirement. Saving for retirement works like debt, but in reverse. The longer you set aside money for retirement, the more time you give the power of compound earnings to work for you. This money can even continue working for you long after you retire. Consider depositing some or all of your refund check into a Traditional or Roth IRA. You can contribute a total of $7,000 to an IRA in 2024, or $8,000 if you're 50 years old or older. Save for a home. Home ownership is a source of wealth and stability for many Americans. If you don't own a home yet, consider building up a down payment fund using some of your refund. If you already own a home, consider using your refund to start paying your mortgage off early. This is especially important if you have a recent mortgage with higher interest rates. Invest in yourself. Sometimes the best investment isn't financial, but personal. If there's a course of study or conference that would improve your skills or knowledge, that could be a wise use of your money in the long run. Give some of it away. Helping people, and being able to deduct gifts and charity from your next tax return, isn't the only benefit of giving to a good cause.  

WAKE UP AND SMELL THE CHEESE There was this time I invested money I kept for school expenses due in a month in an opportunity that crashed in just two weeks of starting out. That was a very foolish move as I could not come up with a means to replace the money and pay for my school expenses at the time it was due. NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE You can’t be a good investor if you don’t know this basic investment rule. Before you put money into any online investment, ask yourself this question, “This money I’m about to invest, if the company were to close all operations now and elude with invested money, will I be suffering an unbearable loss or would I be able to easily get over it?” Borrowed money also falls into this category. In this case, if the worst were to happen, either the borrower or the lender will have to pay dearly for it. l lent money to someone who got scammed in the past and I ended up cancelling the debt to avoid going back and forth. You may not always be lucky to find a compassionate lender, but someone will surely have to bear the brunt of bad decisions. It’s not all opportunities that require you to start with money. There’s a saying that you need money to make money but it’s not completely true. I believe it should be rephrased as “You need resources to make money”. Resources here can be skills, time, money, relationships, connections, gadgets... YOUR GIFT Two years ago, I got involved in an opportunity that seemed legit, few weeks in, I felt something wasn’t right. The company didn't maintain consistency in information such as their location, founders and logo. They made an unexpected move at some point and explained that they were upgrading their website and subscribers were not able to access accounts or withdraw earnings or even their capital. That move clearly showed that sooner or later, something huge was going to happen and it eventually did, sooner than I expected. I remember advising my referrals to be careful and withdraw if they couldn’t take a loss. I recall something similar happening in an opportunity I was in a year earlier and the difference between that time and now is clear. The Holy Spirit can also make this easy for you if you lean and depend on him for guidance. Some may say it's instinct, or call it a hunch. Three years ago, I could not smell the cheese to know when it was going bad or when the supply was reducing so I could start to adapt, move and look for NEW CHEESEE. This book I’m sharing with you has changed my mindset about businesses in this space and how to adapt to changes that happen in life in general. You can get “Who moved my cheese” by Spencer Johnson from online book stores. I'm glad you read to this point and certain you learnt a thing or two. Feel free to share your experiences in the comment section, someone might learn from it.

Money and life are never good friends Opinion It is fast becoming a very materialistic world. With soaring costs of standard of living, strict budget control is not anymore just for the miserly. High income earners, too, find themselves counting the pennies. A relative confessed that he was finding it hard to relax without thinking about education fees, clothing and other demands required for his children. He has a calculator under his sofa in the living room and another under the pillow of his bed. “I just whip it out and calculate whenever I feel the urge,” he told me,” I wouldn’t sleep until I have assured myself that I can afford to pay the bills that month.” Some people would accuse him of being obsessed with making ends meet. It is also true that he is not doing his health a favour either. However, he is not alone. There are many millions around the world who are battling with mortgages, car repayments and credit card bills. One banker said that most of the credit taken by customers cannot be justified. “ People who are taking loans to expand their houses, buy better cars or put their children in expensive schools know that they cannot really afford the expenses. If they think carefully they would realise that such costs are not necessary,” the banker said. Of course, banks do not run advisory service to try to discourage clients from taking avoidable loans. They survive on giving out as much credit as possible and it is up to you to sort out your problems. Banks now have a scheme that will put you and your children on a long-term loan commitment. They pay higher education fees for your children that can be repaid when the youngsters start working. They offer you a 40-year mortgage that your children can continue paying after your death. Part of the problem is that banks make it so easy for us to get ensnared in long-term financial commitments. Banks also team up with insurance companies to get you pay more. They convince you that you cannot afford not to have a cover. There is a life insurance and covers such as critical illness, medical and loss of job. All these extras accumulate to a formidable sum that you don’t really afford. Here in the Gulf, nationals do not have the habit of having two children. We usually breed prolifically to keep up with tradition. The local belief says that every child is born with a special blessing. This means, you don’t have to worry about feeding or educating them even if you have ten children. Provided, I might add, you carefully stick to the budget. However, we go wrong when we cannot resist temptations. It then becomes easy to blame the fast pace of life. However, it seems that people who live quietly in obscured environments are relatively at peace with themselves.

"I make decent money! I don't understand why I don't have something to show for it. Where does it all go?" Your tax preparer gives you either a blank stare or holds their hands up with a baffled look on their face. 🤷♀️ You resolve to do better with managing your money, but aren't sure where to start. You hop on the Internet... ...and find there's so many methods to pay down debt, save, or budget that it's overwhelming to choose which one works best for you. Congratulations! You've reached stage 2 of The 4 Stages of Money Confidence and Stability. You are now in The Curious Kitten Stage! 🐈 Just like the next stage in a game, there are stages with your money, too. And as you progress, you'll gain more confidence, your stress levels will decrease and you'll feel more intentional and in flow when it comes to managing your money. You'll see more and more progress inside your bank accounts the higher the level you are. If you're in The Curious Kitten stage, you've recognized you want to manage your money better so you can grow your bank account and stop money stress, but you're not sure how and where to get started. 🕺 You're looking for ways to grow your bank account and feel confident with handling money 📋 You feel like you make a lot of money, but aren't  sure where it’s going and want to start paying attention to spending habits 💻 You're researching different methods to pay off debt, save, or budget, and feel overwhelmed by all the different "money guru's" telling you different ways to reach your goal 📈 Budgeting feels hard because income may look different month to month, and that causes budgeting to feel chaotic and stressful, OR, ❓ You try to do a budget, and because you're inconsistent with tracking transactions it can get confusing and you give up after a week 🤔 You recognize your financial habits may be tied to your money mindset, but you're not sure what that connection is 👫 You talk to your spouse constantly about getting out of debt, saving, or budgeting and how you can work together despite different money tendencies, but working together hasn't happened yet. 👋 You're curious about working with someone to help you stop money stress and be more intentional with your money, so you can have clarity and confidence with managing your finances The Curious Kitten is in the exploration stage of discovering how to be more intentional with money and stop money stress. If you're ready to explore and discover what might be holding you back from having confidence and clarity with your money and growing your bank account, DM me "READY!" We will set up a Money Strategy Session to create a plan to help you get from where you are to where you want to be with your finances, and if my 1-1 6 month Steward and Grow Method is a good fit to ignite that plan to accelerate your results for a lifetime.